Silicon Carbide is a critical material for EVs due to its superior electrical and thermal properties. It's used in power electronics, specifically for high-voltage, high-temperature applications, such as inverters and chargers. SiC components enable more efficient energy conversion, faster charging, and longer battery life in EVs. They reduce heat generation and enhance overall performance, making SiC a key technology for improving the efficiency and range of electric vehicles.
The global silicon carbide (SiC) market for electric vehicles is projected to reach $9,031.2 million by 2032 from $513.0 million in 2022, growing at a CAGR of 33.02% during the forecast period 2023-2032
The silicon carbide (SiC) market for electric vehicles is experiencing rapid growth and transformation, driven by the compelling advantages that SiC technology offers to the electric mobility sector. SiC, a semiconductor material with superior properties compared to traditional silicon, is revolutionizing the power electronics landscape in EVs.
Passenger Vehicles Demand for Silicon Carbide (SiC) Market for Electric Vehicles Expected to be Dominant over Commercial Vehicles
On the basis of vehicle type, the silicon carbide (SiC) market for electric vehicles is majorly segmented into two segments, i.e., passenger vehicles and commercial vehicles. Furthermore, commercial vehicles considered for this report consist of light commercial vehicles and heavy commercial vehicles. Production and sales of passenger electric vehicles are anticipated to be higher than that of commercial vehicles, as more users are rapidly adopting EVs and replacing their IC engine vehicles with EVs due to their cost efficiency and various government subsidies, among others. Passenger vehicles tend to focus more on maximizing efficiency, range, and performance, which aligns well with the benefits that SiC can provide. Therefore, the passenger vehicle segment is expected to lead the market as the sales and production of passenger electric vehicles are anticipated to increase globally.
Battery Electric Vehicles (BEVs) are Anticipated to Grow at a Significant Rate in the Forecast Period
The silicon carbide (SiC) market for electric vehicles encompasses two major types of electric vehicles, which are battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs). The advantages of SiC power semiconductors over silicon (Si) power semiconductors, such as significant reduction in power losses, are driving the usage of materials in BEVs.
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The developments of EV components with integration of SiC and use of such components in advanced new BEV models are supporting the market growth. For instance, in April 2023, Denso Corporation developed an inverter with integration of semiconductors. This inverter would be used in the new Lexus RZ BEV model.
Traction Inverter Application Segment Expected to be Dominant in Silicon Carbide (SiC) Market for Electric Vehicles
Application type for the silicon carbide (SiC) market for electric vehicles is mainly categorized into three types, i.e., traction inverter, on-board charger, and DC-DC converter. The traction inverter application type segment is poised to assert its dominance in the silicon carbide (SiC) market for electric vehicles. As the automotive landscape pivots toward sustainability and efficiency, the traction inverter segment emerges as a focal point for innovation. SiC-equipped traction inverters hold the promise of better energy efficiency, extended driving ranges, and optimized battery utilization, addressing pivotal concerns in the EV ecosystem.
Up to 800V Voltage Expected to be Widely Used in Silicon Carbide (SiC) Market for Electric Vehicles
The most widely used voltage type is up to 800V in the silicon carbide (SiC) market for electric vehicles. The up to 800V voltage type offers a well-balanced solution that caters to the requirements of modern electric vehicles. This voltage range enables EV manufacturers to design compact and lightweight power electronics systems, which are essential for enhancing vehicle range and overall performance. Furthermore, the up to 800V voltage type allows for effective integration of SiC components, resulting in reduced switching losses and increased overall efficiency. In contrast, the more than 800V voltage type presents certain challenges in terms of implementation and practicality for electric vehicles. While it may offer higher power handling capabilities, it often comes with trade-offs in terms of increased system complexity, size, and weight. This can lead to decreased efficiency and limitations in vehicle design.
China to Dominate the Silicon Carbide (SiC) Market for Electric Vehicles
The demand within the silicon carbide (SiC) market for electric vehicles varies according to various geographical regions. China is expected to dominate the global silicon carbide (SiC) market for electric vehicles as the region has witnessed significant growth in the electric vehicle industry, driven by supportive government policies, increasing environmental concerns, and advancements in technology. China's government support, research investments, and partnerships with SiC manufacturers have accelerated the development and implementation of this cutting-edge technology within the electric vehicle ecosystem. Moreover, China's well-established supply chain infrastructure and robust manufacturing capabilities provide a competitive edge in SiC production, contributing to cost reductions and scalability.
Scope of the Study
The market study conducted by BIS Research has considered the following definition of silicon carbide (SiC) semiconductor, “SiC (silicon carbide) is a compound semiconductor composed of silicon and carbide. SiC provides a number of advantages over silicon, including 10x the breakdown electric field strength, 3x the band gap, and enabling a wider range of p- and n-type control required for device construction”. The report considers market segmentation by vehicle type (passenger vehicle and commercial vehicle), propulsion type (battery electric vehicle and hybrid or plug-in hybrid vehicles), application type (traction inverter, on-board charger, DC-DC converter, power module), product type (SiC power modules, MOSFET diodes) and voltage type (up to 800V and more than 800V). The other applications of the SiC semiconductors in ICE vehicles, data centers, PV modules, and industrials are not part of the scope and excluded from the market estimations.
Key Questions Answered
- What are the major factors and trends that are impacting the adoption of silicon carbide (SiC) in electric vehicles?
- What are some of the key initiatives taken by the existing players to improve their market positioning and strategies adopted by new players entering the market space?
- Which application segment is expected to dominate the SiC market for electric vehicles?
- Which product type segment is expected to emerge as the fastest-growing segment in the SiC market for electric vehicles?
- Which region dominates the global SiC market for electric vehicles and is expected to emerge as the fastest-growing region?
- What are the steps taken by existing manufacturers to overcome the hurdles toward the adoption of SiC semiconductors in electric vehicles?
- What are the latest developments across the globe for the SiC market for electric vehicles, and what are the adoption patterns?
- What are the regulations affecting the adoption of the SiC for electric vehicles?
